The Franchise Council of Australia welcomes initiatives announced in the 2016 Federal Budget to stimulate economic prosperity in the small business sector.
“Almost all franchisees and 95 per cent of franchisors operating in Australia are small businesses. The small business tax cuts announced in the 2016 budget will provide these entrepreneurs, who collectively deliver $144 billion of revenue into the Australian economy, with long term benefits through lower company tax rates,” said Franchise Council of Australia Executive Chairman, Bruce Billson.
“Franchisors and franchisees are also set to gain the immediate benefit of a reduced tax rate of 27.5 per cent for businesses with an annual turnover to $10 million, simplified BAS reporting as well as expanded access to immediate deduction for asset purchases of up to $20,000 and access to the cash flow benefits generated by these deductions.
“With the sector being a major employer of young people, the new youth employment initiative is of great interest and the sector will no doubt welcome the incentives to provide even more job opportunities for young people,” Mr Billson said.